About This Plan

Proprietorship Firm is most common structure opted by merchants and service providers. A sole proprietor becomes single owner of business. The law treats sole proprietor and his buisness as same and he is held personally liable for all business debts. The low cost of registration, minimum compliances make it a desirable option for small buisnesses.
Under this plan, Cleartax will help your business get registered under Shop and Establishment Act if you are a goods supplier or with registration thouh GSTIN if you are a sevice provider, and get advice on other registrations required under various authorities to operate as a proprietor.

Services Covered

Session with ClearTax Expert

PAN Application

Registration under Shop & Establishment Act for goods suppliers or GST for service providers (any one)

FAQs

What is a Proprietorship?

A proprietorship/sole trading firm is a business that is owned and run by an individual person. The owner and the business are treated one and same. Proprietor is personally liable for all business debts i.e his personal property may also be used to repay business debts.

Proprietorships are not regulated by any particular Act, hence there is no registration. Every buiness needs registration under Shop & Establishment Act whether it is providing a service or dealing in goods. Other registrations such as VAT, Service tax etc depend upon nature of product/service.

I am a sole trader. Do i need TAN registration?

TAN is Tax Deduction and Collection number which is needed if you are responsible for deducting tax at source on behalf of Income Tax Department. It is also quoted in various challans, returns etc.
Not every proprietor is required to get a TAN unless it is required due to the nature of his business or profession. ClearTax expert will advise you if you need to obtain TAN.

Is there any guideline on choosing name for the Sole Proprietorship firm?

The name of the firm should not contain any words which indicate the approval/support of the government unless the government has given its written consent for the use of such words as part of the firm’s name. The name of the firm can be reserved by getting trade mark registration.

What is the objective of the Shops & Establishments Act?

Every Indian state has enacted certain rules and regulations with regard to conditions of work. The objective is to secure uniform benefits for employees working in different establishments, from shops, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment.

When is a Shops and Establishments Act license required?

Every shop and establishment needs to register itself compulsorily under this Act within 30 days of commencement of work. As this is such a basic license, many other licenses require this as proof of a commercial business. For example, most banks will require you to furnish it if you want to open a current account.

What are the records to be maintained under the Shops and Establishment Act?

Under the Shop and Establishment Act, every business has to seek approval from Department of Labour and keep up-to-date registers regarding details of employment, fines, deductions and advances, salary and holidays. The requirements may vary from state to state. Files related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually.

Which are the specific cities where the service will be delivered?

The service is state specific in case you need a shop license and will be rendered only in specific cities being Mumbai, Gurgaon, Hyderabad, Kolkata, Jaipur, Surat, Bangalore, Chandigarh, Pune and Delhi.

What are the government fees applicable for registraton under Shop and Establishment Act?

These are the government fees applicable for registration under Shop and Establishment Act. These depend on the state and the number of employees.

Andhra Pradesh

0 Employees: Rs. 30;

1 to 5 employees: Rs. 100;

6 to 10 employees: Rs. 200;

11 to 20 employees: Rs. 1000

Delhi

0 Employees: Rs. 5;

1 to 10 employees: Rs. 15;

10 to 25employees: Rs. 30;

25 and above employees: Rs. 50

Madhya Pradesh

0 Employees: Rs.100

1 to 3 employees: Rs.150;

3 to 10 employees: Rs. 200;

More than 10 employees: Rs. 250

Maharashtra

0 employees: Rs. 100;

1 to 5 employees: Rs. 300;

6 to 10 employees: Rs. 600;

11 to 20 employees: Rs. 1000;

21 to 50 employees : Rs. 2000;

51 to 100 employees : Rs.3500;

101 or more: Rs. 4500

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Proprietorship Firm is most common structure opted by merchants and service providers. A sole proprietor becomes single owner of business. The law treats sole proprietor and his buisness as same and he is held personally liable for all business debts. The low cost of registration, minimum compliances make it a desirable option for small buisnesses.
Under this plan, Cleartax will help your business get registered under Shop and Establishment Act if you are a goods supplier or with registration thouh GSTIN if you are a sevice provider, and get advice on other registrations required under various authorities to operate as a proprietor.

Services Covered

Session with ClearTax Expert

PAN Application

Registration under Shop & Establishment Act for goods suppliers or GST for service providers (any one)

A proprietorship/sole trading firm is a business that is owned and run by an individual person. The owner and the business are treated one and same. Proprietor is personally liable for all business debts i.e his personal property may also be used to repay business debts.

Proprietorships are not regulated by any particular Act, hence there is no registration. Every buiness needs registration under Shop & Establishment Act whether it is providing a service or dealing in goods. Other registrations such as VAT, Service tax etc depend upon nature of product/service.

I am a sole trader. Do i need TAN registration?

TAN is Tax Deduction and Collection number which is needed if you are responsible for deducting tax at source on behalf of Income Tax Department. It is also quoted in various challans, returns etc.
Not every proprietor is required to get a TAN unless it is required due to the nature of his business or profession. ClearTax expert will advise you if you need to obtain TAN.

Is there any guideline on choosing name for the Sole Proprietorship firm?

The name of the firm should not contain any words which indicate the approval/support of the government unless the government has given its written consent for the use of such words as part of the firm’s name. The name of the firm can be reserved by getting trade mark registration.

What is the objective of the Shops & Establishments Act?

Every Indian state has enacted certain rules and regulations with regard to conditions of work. The objective is to secure uniform benefits for employees working in different establishments, from shops, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment.

When is a Shops and Establishments Act license required?

Every shop and establishment needs to register itself compulsorily under this Act within 30 days of commencement of work. As this is such a basic license, many other licenses require this as proof of a commercial business. For example, most banks will require you to furnish it if you want to open a current account.

What are the records to be maintained under the Shops and Establishment Act?

Under the Shop and Establishment Act, every business has to seek approval from Department of Labour and keep up-to-date registers regarding details of employment, fines, deductions and advances, salary and holidays. The requirements may vary from state to state. Files related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually.

Which are the specific cities where the service will be delivered?

The service is state specific in case you need a shop license and will be rendered only in specific cities being Mumbai, Gurgaon, Hyderabad, Kolkata, Jaipur, Surat, Bangalore, Chandigarh, Pune and Delhi.

What are the government fees applicable for registraton under Shop and Establishment Act?

These are the government fees applicable for registration under Shop and Establishment Act. These depend on the state and the number of employees.

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